Hospital Sues US Over $11.5 Million Employee Retention Credit

An Eastern Washington state hospital network is suing the US government over IRS denial to pay $11.5 million in Covid-era tax credits.

Tri-State Memorial Hospital, the nonprofit that owns Clarkson, Wash.-based hospital TriState Health and several other facilities, was forced to partially suspend its operations in the first three quarters of 2021 thanks to over 30 government orders put in place, it told the US District Court for the Eastern District of Washington in its complaint Thursday.

Tri-State’s employee retention credits from that period should qualify for the refund under the Coronavirus Aid, Relief, and Economic Security Act, but the ...